In the 1990 case of James B. Beam Distilling Co. v. Georgia, the U.S Supreme Court ruled that a decision made in a previous court case should apply retroactively to all similar cases, even those already finalized. The dispute began when Georgia imposed an excise tax on imported liquor that was higher than its domestic equivalent, which violated the Commerce Clause according to prior rulings by the Supreme Court (specifically Bacchus Imports Ltd v Dias). When Beam paid this tax under protest and subsequently sued for reimbursement after Bacchus ruling, lower courts denied their claim stating that Bacchus did not apply retroactively. However, upon reaching the Supreme Court it was decided in a 7-2 vote that selective application of judicial decisions undermines rule-of-law principles and erodes public confidence in judiciary fairness; hence they held for Beam's favor asserting full retroactivity as default remedy barring some exceptions.

In the dissenting opinion for James B. Beam Distilling Co. v. Georgia, Justice Blackmun argued that retroactive application of a new rule should not be automatic but rather determined on a case-by-case basis considering fairness and public policy implications. He criticized the majority's decision as overly rigid and warned it could lead to unfair results by failing to consider individual circumstances of each case or potential negative impacts on state revenues from sudden changes in tax law interpretations. Furthermore, he expressed concern about undermining states' reliance interests in their own laws and court decisions if they can be abruptly overturned without regard for past expectations or future consequences.